Upon expiration or termination of the Stretch Zone Franchise Agreement, what is automatically assigned to the franchisor?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ASSIGNMENT AGREEMENT is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("we," "us" or "our") and ("you" or "your"). |
|---|
| BACKGROUND |
| A. |
| The parties are entering into a Stretch Zone Franchise Agreement on |
| (the "Franchise Agreement"). |
| B. |
| As a condition to signing the Franchise Agreement, we have required that you |
| assign to us all of your right, title and interest in the telephone numbers, telephone listings, |
| facsimile numbers, and telephone directory advertisements relating to the Stretch Zone |
| Franchise (the "Franchise Business") upon the expiration or termination of the Franchise |
| Agreement |
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, as a condition of signing the Franchise Agreement, the franchisee must assign to Stretch Zone Franchising, LLC all rights, titles, and interests in telephone numbers, telephone listings, facsimile numbers, and telephone directory advertisements related to the Stretch Zone Franchise upon expiration or termination of the Franchise Agreement.
This means that when a Stretch Zone franchise closes or the agreement ends, the franchisee loses control of all listed contact methods and advertising avenues associated with the business. This assignment ensures that Stretch Zone maintains control over its brand's presence and customer access points, even after a franchise location ceases operation.
For a prospective franchisee, this condition highlights the importance of building a strong, independent customer base. While the initial phone numbers and listings may provide a starting point, a franchisee should focus on developing direct relationships with customers and establishing their own marketing channels to mitigate the impact of losing these assets upon termination or expiration of the agreement. This also prevents a former franchisee from directly competing using the same contact information.